Annual Report 2016

A classic with excellent prospects

Engine manufacturers are always keeping an eye on the future because requirements, as regards emission levels, are constantly increasing. At the same time, emerging trends in technology need to be identified early on. DEUTZ has therefore decided to act by the principle‘Future Driven. Engine Technology for Tomorrow.’ Whether it’s new engines or innovative variants of our successful products, we always provide our customers with the solutions of tomorrow.

A clean environment

Practical steps to protect the environment are taken every day at DEUTZ; by employing the latest technology, DEUTZ engines significantly reduce pollutant emissions all around the world.

Running combustion engines produces emissions; soot particles, nitrogen oxides and other pollutants harm both people and the environment. Ever more stringent emissions standards can counter these effects. North America, Europe, Japan and now South Korea have, so far, enacted the strictest emissions standards and have largely harmonised them. Emissions legislation in many emerging markets is aligned to these standards and will catch up in the medium term.

In 2019 the EU will introduce its EU Stage V 1) emissions standard for off-road engines and this will lower the particulate limit still further. This will be the first time that, in addition to the particulate mass, a limit will also have been placed on the number of particles, thus offering an answer to the fine dust problem. In order to achieve this, the technology for a sealed diesel particulate filter is required. Consequently, as of 2019, Europe will have the most stringent exhaust emissions standards in the world. Over the last two decades, the limits for nitrogen oxides and particulate mass (essentially soot particles) have been reduced by 95.7 per cent and 97.9 per cent2) respectively.

1) Regulation (EU) 2016/1628 of the European Parliament and of the Council dated 14 September 2016.2) DEUTZ diesel engines reduce the particulate mass by more than 99 per cent.

Our TCD engines with cubic capacities of up to 7.8 litres and fitted with diesel particulate filters to meet the current emissions standard (EU Stage IV) already satisfy the limits being introduced in 2019 for the next emissions standard (EU Stage V). Furthermore, our ‘Stage V ready’ label guarantees that the entire DEUTZ TCD engine range from 2.2 to 16 litres cubic capacity will meet EU Stage V without the need for modifications to customers’ equipment.

“DEUTZ diesel engines with particulate filters already meet the world’s strictest emission levels, which will come into force in Europe from 2019. Exhaust aftertreatment is active over the entire characteristic map in DEUTZ engines, which means that our engines meet the prescribed emission levels even under real-life operating conditions.”

Dr Ing Markus Schwaderlapp, Head of Research & Development, DEUTZ AG

DEUTZ engines offer high performance, a small installation space and, at the same time, reduced fuel consumption. In the last ten years fuel consumption by DEUTZ engines has fallen by considerably more than 10 per cent. This is to the benefit both of our customers and of the environment since less CO2 is released. It also means that DEUTZ engines are making a positive contribution to environmental protection.

The future of the INTERNAL COMBUSTION ENGINE

The future of the combustion engine is today’s hot topic. The diesel engine in particular is under close scrutiny. The question arises as to what contribution combustion engines might be able to make to industrial societies in future, given the current background of ecological challenges.

But environmentally compatible diesel engines are a possibility. The latest exhaust aftertreatment technology, consisting of a diesel oxidising catalytic converter (DOC), a diesel particulate filter (DPF) and selective catalytic reduction (SCR), eliminates virtually all nitrogen oxide emissions and soot particles. In the case of the DPF, this applies not just to the particulate mass but also to the number of particulates, thus providing an answer to the problem of fine dust. Within urban areas, the exhaust from diesel engines fitted with a DPF actually contains a lower particle concentration than the ambient air.

Determining particulate contamination in fuels.

Truck engines and off-road diesel engines are being tested for compliance with emission limits across the entire mapping range. Exhaust aftertreatment is therefore active across the whole of the engine’s power output range, including under real-life conditions. Emissions are thus being effectively reduced even under severe load conditions and at high engine speeds.1)

It can therefore be said that the diesel engine has shown itself under EU Stage V to be a very low-emission (almost zero-emission) form of propulsion.

1) In DEUTZ engines, exhaust aftertreatment is active over the entire engine map range as long as the exhaust temperature remains above the release temperature for AdBlue dosing.

What exactly is the problem with CO2? Burning fossil fuels releases carbon in the form of CO2. It is not poisonous but an essential and integral element in photosynthesis; living creatures produce CO2 and plants convert it into carbon and oxygen. The challenge lies in the fact that when fossil fuels are burned more CO2 is released than nature is capable of processing within the same period of time. The increased proportion of CO2 in the air results in the greenhouse effect, which leads to global warming. What are the responses to this challenge?

“The diesel engine’s contribution to particulate pollution is made negligible by the introduction of the particulate filter. Measurements show a lower concentration of particles in the exhaust from diesel engines fitted with particulate filters than in the air in cities. Air quality in conurbations would improve if older engines were to be more quickly replaced by new engines using significantly better technology. In my view, the diesel will still be the most environmentally friendly drive system for a long time to come.”

Professor Thomas Koch, Head of the Institute of Reciprocating Enginesat the Karlsruhe Institute of Technology (KIT)

Test cell of a trial engine.

Energy efficiency: fuel consumption by today’s diesel engines has noticeably improved compared with earlier generations; this particularly applies to DEUTZ engines. Lower consumption leads to an equivalent reduction in CO2 emissions. Diesel engines are also some 15 to 20 per cent more energy-efficient than petrol engines. If, for example, all diesel engines were to be replaced by petrol engines, CO2 emissions would increase by the same figure. On the other hand, the energy efficiency of natural gas is better than that of diesel; and, as regards nitrogen oxide and particulate emissions, it should also be regarded as very clean with a much simpler method of exhaust aftertreatment.

Are electric motors the solution to our CO2 problems? If the electricity is generated from renewable energy sources, the carbon footprint of electric motors is, of course, smaller than that of the fossil fuel powered combustion engines. This vision could well be blurred a little by the environmental impact of batteries. Standalone electric motors are also unsuitable for powering heavy-duty applications.

The diesel engine remains the instrument of choice when the requirement is for high power and high torque. As for ‘off-road’ applications, it is for the time being largely irreplaceable. To take one example of a heavy-duty application: a 600 litre tank of diesel that would allow a tractor1) to continue ploughing fields for ten hours would, with the currently available technology, equate to an electric motor battery with a volume of some 4,500 litres and weighing over 15 tonnes. This would obviously be inconceivable in practice. Nonetheless, hybrid technology is opening up realistic potential for saving fuel. Partial electrification will produce benefits for customers and the environment even in industrial applications once the cost of the electrical components has fallen. Hybrid drives, a combination of a diesel and an electric motor, are a good option especially where power requirements fluctuate. This is an area where we have already been able to demonstrate fuel savings – and corresponding CO2 reductions – of up to 40 per cent.

1) The example relates to a Fendt 939 tractor.

Synthetic fuels can also offer an alternative route to a CO2-free future. Essentially, these so-called ‘e-fuels’ are industrial imitations of photosynthesis; using clean green electricity, water is split into hydrogen and oxygen by the process of electrolysis. By adding CO2 (methanisation), a carbon-based gas can be generated that can then also be liquefied (gas-to-liquid). Combustion engines can be run CO2-neutral by using synthetic fuels; as much CO2 is recovered from the environment as is released into it by the combustion process.

Conclusion: even in the future, the diesel engine can justify being included in the mix of drive systems. On the emissions side, the diesel engine has done its EU Stage V homework; it even meets the strict legal pollution limits in inner-city areas. (Partial) electrification will also result in further fuel savings even in industrial applications. The combustion engine is potentially capable of being run CO2-neutral on synthetic fuels, which would make it a sustainable source of power.

“Liquid hydrocarbons from renewable sources have a very high energy density. They are urgently needed for storing sufficient volumes of energy where the storage capacity is comparatively small, particularly for energy-intensive mobile applications such as commercial vehicles and off-road applications.”

STAGE V READY

It was in April 2016 at bauma, the world’s biggest construction equipment trade fair, that DEUTZ unveiled its latest engines. In addition to the already well-established ‘Stage V ready’ product range, we presented in particular the new TCD 2.2 diesel and gas engines as well as the new gas variant of our tried-and-trusted TCD 2.9.

DEUTZ’s TCD 5.0 engine.

The new TCD 2.2 – a 2.2 litre cubic capacity engine, as the name suggests – is a three-cylinder variant of the successful four-cylinder TCD 2.9 engine; it generates up to 55 kW. Both engines are available as diesel or liquefied petroleum gas (also known as LPG or fuel gas) versions; this represents a first within the DEUTZ product range, which otherwise runs on diesel. The G 2.2 and 2.9 gas variants generate up to 42 and 55 kW respectively. Their size and design is the same as their self-igniting counterparts. This results in a high proportion of common components, with corresponding advantages for customers as regards servicing and obtaining spares. The gas variants are of particular interest for the material handling and compact construction equipment sectors. Not needing sophisticated exhaust aftertreatment, they are also particularly well suited for use in enclosed buildings, as liquid gas produces far fewer emissions than diesel. These engines need only a three-way catalytic converter to meet EU Stage V, and thus offer an alternative and provide our customers with additional flexibility. The TCD 2.2 and the gas variants will go into series production in 2019 in good time for the EU Stage V emissions standard, which will apply by then.

Gas engines are nothing new for DEUTZ; the very first DEUTZ engine, the 1867 atmospheric gas-powered engine, was of this design. And gas was also the fuel for the first four-stroke engine – the Ottomotor – developed in 1876 by the founder of DEUTZ, Nicolaus August Otto.

The DEUTZ stand at the 2016 bauma trade fair in Munich.

The TCD 5.0, which we also presented at bauma 2016, represents a completely new development. This 5 litre cubic capacity four-cylinder engine is being developed to meet the imminent EU Stage V emissions standard and will enhance our product portfolio in the 100 to 150 kW power range. A modular design has been used to treat emissions from this engine; this permits so-called ‘emission downgrades’ to the same basic engine by doing away with certain exhaust aftertreatment components. This is an important aspect for our installation customers, who export equipment fitted with our engines throughout the world. Due to its compact design, the new 5 litre engine can even be installed as a ‘drop-in solution’ in the installation space of a DEUTZ TCD 4.1. The TCD 5.0, which will go into series production from 2019, can be used both for industrial and agricultural applications.

As part of a collaborative partnership with Liebherr, DEUTZ is also planning to expand its product range in the upper power range by four new diesel engines. DEUTZ will be granted the global rights to market and service diesel engines in various applications from 200 to 700 kW. The engines produced by our partner comply with the latest emissions standards (EU Stage V); from 2019 they will be available as series production models for DEUTZ to supply and distribute under its own brand name.

Visitors to bauma during the world premiere of the TCD 5.0.

We presented one of these upper power range engines - the new TCD 9.0 four-cylinder diesel engine - in November 2016 at the bauma trade fair in China. The TCD 9.0 will also be manufactured under licence by our Chinese joint venture company, the DEUTZ (Dalian) Engine Co. Ltd., in order to supply local customers in the most efficient manner.

“The product portfolio incorporating the innovations that DEUTZ showcased at bauma is the most complete and comprehensive in the power output range relevant to us of 40 to 170 kW. The new products for the III B, IV and V emissions standards have been launched at exactly the right time. The TCD 2.9 and 3.6 engines fill us with confidence.”

Alexandre Marchetta, Executive Vice President, Groupe MECALAC S.A.

“This DEUTZ engine is a robust industrial engine whose design makes it possible for us to offer our customers compact vehicles. The engine’s gear drive makes it suitable for use in extreme conditions, which enables us to produce forklift trucks for the widest possible range of applications. The fact that the engine is available in a large number of variants also means we can accommodate a wide range of specific customer requirements such as air conditioning or a larger alternator.”

Ottmar Neuf, Director for Engines and Drivetrain, KION GROUP AG

“Naturally, we looked at a number of engine manufacturers as we were developing our TH range,” said Malcolm Early, Vice President of Marketing for Skyjack, Inc. “In the end, DEUTZ won out as the most reliable, notable company providing a high-torque, 74 hp engine that met Tier-4-Final requirements. Their engines have been a key component in the successful launch of these new telehandlers.”

Malcolm Early, Vice President Marketing, Skyjack, Inc.

“We started the cooperation with DEUTZ with Tier 4 final products and valued the material handling purpose exhaust aftertreatment system, robust product quality and professional application engineering support.”

T. W. Eom, General Manager, R&D, Clark Material Handling Asia

OPTIMISATION OF SITES

The measures aimed at comprehensively optimising our network of sites in Germany in order to increase efficiency are now either complete or well advanced. These measures include vacating the Cologne-Deutz site and building a new centre for manufacturing camshafts and crankshafts at our biggest site in Cologne-Porz. We are also closing our exchange engine plant in Übersee on Lake Chiemsee, which is being integrated into the Ulm plant in two stages.

Camshafts in the process of being finished.

THE NEW SHAFT CENTRE

Around €26 million has been invested in the new DEUTZ shaft centre in Cologne-Porz, which occupies 13,500 square metres – equivalent to almost two football pitches. The cornerstone ceremony was held in July 2015, and crankshaft and camshaft production was moved from the Cologne-Deutz site to the new building over a period of several months up to the beginning of 2017. Production did not stop while the total of 130 items of machinery and equipment were being relocated. This involved a huge amount of planning of the individual steps and overall it worked very well. At all times, the highest priority was given to making sure that customers were supplied with the products and parts that they needed.

The ‘stresstech’ machines, which are used to inspect the quality of the camshafts, represent a special highlight in the new shaft centre. They allow the inner structure of the shaft to be inspected for weak points but without damaging any parts. The machines play a key role in the quality assurance strategy at the new shaft centre.

Employee removes a finished camshaft.

Production of crankshafts and camshafts at the Cologne-Porz site is now in full swing, signifying that this major project has now been successfully completed. This year, the efficiency gains of around €10 million a year envisaged by the consolidation programme will begin to be realised, primarily through the new shaft centre, the relocation of Xchange engine activities from Übersee to Ulm, and the absence of costs from the Cologne-Deutz site.

A development plan has been submitted for the vacated site in Cologne-Deutz, which covers around 16 hectares. This former industrial area is to be converted into a city district that will contain housing, commercial areas and green spaces. DEUTZ intends to sell the site.

Quality control using a micrometer.

SMALL PRODUCTION RUNS IN ULM

As part of the relocation of activities from Übersee on Lake Chiemsee to Ulm, the Ulm plant is being expanded to become the plant for small production runs, focusing on DEUTZ Customised Solutions products, project business, exchange engines and models that are soon to be discontinued. Assembly and order management were transferred in 2015. It is particularly encouraging that, despite the move, there was an increase in revenue from the reconditioned exchange engine business. Throughput times, which are critical in the Xchange process, were shortened and synergies were leveraged. These synergies largely derive from the use of the Ulm plant’s infrastructure and from shared overheads. All other functions will move this year, completing the last stage of the comprehensive optimisation of our network of sites.